31.03.202607:35:17UTC+00European Stocks Set for Biggest Monthly Drop Since 2020

European equities were subdued on Tuesday, with the STOXX 50 edging down 0.2% and the STOXX 600 trading broadly flat, as investors weighed the latest developments in the conflict involving Iran. The Wall Street Journal reported that US President Trump told aides he was prepared to halt US operations against Iran even if the Strait of Hormuz remained closed, warning that attempts to force Tehran to reopen the key oil transit route could prolong the confrontation.

On the macroeconomic front, French inflation in March rose more than expected, reaching 1.7%, largely driven by higher energy costs. Sector-wise, energy and technology names lagged, while consumer non-cyclical stocks advanced. Among the weakest performers were STMicroelectronics (-3%), NXP Semiconductors (-2.2%) and ASML Holding (-2.2%), while energy majors such as TotalEnergies (-0.6%) and Siemens Energy (-2%) also traded lower.

For the month of March, the STOXX 50 has fallen nearly 10% and the STOXX 600 has lost more than 8%, marking their steepest monthly declines since 2020.